This spreadsheet was built pre-JV so it was never intended to...

This spreadsheet was built pre-JV so it was never intended to look at the P&L of the JV.

The main questions i wanted to answer in this spreadsheet when i built it were:
• How much will it earn per house?
• How many houses per year?
• How much revenue can 1 HX generate?
• How much profit can 1 HX generate after costs?
• Minimum number of HX Units to cover FBR overheads and self fund expansion? ~25
• Optimum number of HX Units to take off? ~50

The units displayed in the spreadsheet can be used to look into the JV, lets say FBR Decide to lease the HX units to FBR Australia on a day rate. This could be used by finding a sweet spot between 2 outcomes below

1. Look at the potential income a HX can generate by building houses this is what FRB Australia could bring in = $1.5M/ann
2. Look to cover CAPEX / OPEX costs of the HX, this is what FBR needs as a minimum to cover costs = $400k/ann

The below numbers are roughly laid out just to get the mind jogging into my train of thought... So the rental rate should be above $400k/annum and below $1.5M/ann. Lets say FBR go for 20% profit margin on cost making it $500k/annum or $1,370 per day hire.

From there you can add your desired contingency % for downtime and formulate a rough day hire rate. Once you have a day hire rate, then you can start doing sums down at the JV level like:

• HX cost per day
• HX revenue per day

So on and So on.

You could look at the BKW side as well, but thats another study in itself which i dont have time to do for now.

Cheers,